Security Bank open to acquisitions

SECURITY BANK Corp. (Security Bank) is open to possible acquisition opportunities this year, its chief executive said, with the lender also considering becoming an administrator of the personal equity and retirement account (PERA) scheme.

“We’re looking, but let’s see,” Security Bank President and Chief Executive Officer Alfonso L. Salcedo, Jr. told reporters last week when asked if the bank is actively looking for possible acquisitions.

“When it’s there, we have to look at how much you’re paying and what you’re getting,” he added.

Currently, the country’s sixth biggest private domestic universal bank in asset terms has a partnership deal with Bank of TokyoMitsubishi UFJ Ltd. (BTMU). Security Bank received a P36.9-billion capital infusion from Japan’s largest bank after BTMU acquired a 20% stake in the local bank.

Meanwhile, asked if the bank is looking at becoming a PERA administrator, Mr. Salcedo said, “We’re also studying that. We’re looking at the cost to do it plus the potential benefits and revenues so we’re just looking at it first.”

The Bangko Sentral ng Pilipinas (BSP) officially rolled out PERA last Dec. 16, 2016, eight years after Republic Act No. 9505 or the PERA Law came into force in 2008.

So far, BDO Unibank, Inc. and the Bank of the Philippine Islands have obtained accreditation to administer PERA, while the Land Bank of the Philippines has received a mandate to be the cash custodian of the retirement fund.

Aside from Security Bank, Philippine Business Bank has also expressed interest in becoming a PERA administrator.

PERA serves to complement the savings of workers through the Government Service Insurance System or Social Security System, as well as boost the development of the capital markets.

The PERA Law sought to promote capital market development and savings mobilization by establishing a legal, regulatory framework of retirement plans for Filipinos composed of voluntary personal savings and investments.

Shares in Security Bank lost P2 or 0.95% to end at P208.6 apiece on Tuesday.